The Ratio of the Change in the Equilibrium Level of Real

question 308

Multiple Choice

The ratio of the change in the equilibrium level of real GDP to the change in autonomous real expenditures is the

• A) average propensity to consume.
• B) marginal propensity to consume.
• C) multiplier.
• D) unplanned investment.

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Definitions:

Treasury Stock

Shares that were issued by a company and have been repurchased from the market, but not retired.

Stockholders' Equity

The owners' claim on the company's assets, calculated as the company's total assets minus its total liabilities; also known as shareholders' equity.

Assets

Resources owned or controlled by a business, providing future economic benefits.

Additional Paid-in Capital

The amount of money shareholders have invested in the company above the nominal value of the shares.